SFFAS 54 LEASE GUIDANCE: 

RIGHT-TO-USE LEASES: 

DEEMED “OPERATING LEASES” FOR BUDGETARY TREA

WITH A CANCELLATION CLAUSE 

GAIN/LOSS ON CANCELLATION 

EFFECTIVE FISCAL YEAR 2024 

PREPARED BY: 

 GENERAL LEDGER AND ADVISORY BRANCH 

BUREAU OF THE FISCAL SERVICE 

U.S. DEPARTMENT OF THE TREASURY 
Version 

Number 

Date Description of Change Effectiv

1.0 01/2023 Original TFM Bu1.1 03/2023 Lessee Transactions 6-8 updated with budget/accrual guidance. TFM Bu1.2 04/2023 Lessor Year 1 Transactions updated with USSGL 593900 TFM Bu1.3 05/2023 Assumptions for Proprietary Interest Rates clarified per SFFAS 61 

amendments. 

TFM Bu

1.4 09/2023 SFFAS 62 practical accommodation added to “Proprietary 

Accounting Requirements & Agency Decision Points” 

TFM Bu

1.5 12/2023 New Lease Transaction Codes added after November IRC TFM Bu
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Proprietary Accounting Requirements & Agency Decision Points SFFAS No. 54, Leases, as amended by SFFAS No. 60 and SFFAS No. 61, replaces proprietary lease accounting and dipurpose federal financial reports. SFFAS No. 54 is effective for reporting periods beginning after September 30, 2023. 

permitted.) A lease is defined as “a contract or agreement whereby one entity (lessor) conveys the right to control the use of PP&E (th

entity (lessee) for a period of time as specified in the contract or agreement in exchange for consideration.” (SFFAS 54, Pa

that federal lessees recognize a lease liability and a right-to-use lease asset (also referred to as a lease asset), and that fedreceivable and unearned revenues at the commencement of the lease term, unless the lease meets the definitional criteria 

or agreement that transfers ownership, or an intra-governmental lease. For proprietary accounting, entity management is responsible for exercising professional judgement and collaborating w

certain determinations before establishing proprietary accounting treatment, including: 1) Lease Term, with consideration for Options, Renewals/Terminations, and Cancellation Clauses; 

2) Calculation of Lease Asset/Liability; with consideration for Fixed vs. Variable Payments; 

3) Selection of Proprietary Interest Rates - Amortization of Discount on Lease Liability/Receivable; 4) Modifications, Terminations, and any respective remeasurements; and 5) Contracts or Agreements Containing Nonlease and Lease Components (if applicable) 

Proprietary Lease Term & Cancellation Clauses For proprietary accounting, calculating the lease term is pivotal because the classification between short-term leases and 

on the lease duration. The lease term is determined to be the noncancelable lease period, plus certain periods subject to terminate the lease. The noncancelable period is the shorter of the period agreed upon in the lease contract that: (1) prece

lease; or (2) precedes the first option to terminate the lease. In addition, the lessee’s lease term should include the noncaperiods: 

 Involving an option to extend the lease, if it is probable that the lessee or lessor will exercise that option (SFFAS  Following an option to terminate the lease, if it is probable that the lessee or lessor will not exercise that option (

Some specific provisions may also need to be applied when determining the lease term: 

 Periods for which the lessee/lessor (1) have an option to terminate the lease without permission from the other en

extend, are considered to be cancelable periods and are thus excluded from the lease term (SFFAS 54, Par. 19a.) 

 An availability of funds/cancellation clause allowing lessees to cancel a lease agreement if funds for the lease pa

should only affect the lease term when it is probable that the clause will be exercised (SFFAS 54, Par. 19c.) 
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 If a lessee has the option to purchase the underlying asset during the lease term and the contract is not a contract 

lease term should exclude the period, after the date at which the option is probable of being exercised (SFFAS 61

Fixed Vs. Variable Payments The Lessee’s lease asset and the Lessor’s lease receivable should include the present value of payments expected to be 

Generally, these should include: 

 Fixed payments;  Variable payments that depend on an index or a rate;  Variable payments that are fixed in-substance; and  Any lease incentives receivable from the lessor. 

For a complete list of payment types to include in the present value of payments, please see SFFAS 54, Pars. 40 and 56.) Variable payments based on future performance of the lessee or usage of the underlying asset should be recognized as 

the reporting period to which those payments relate. These variable payments should NOT be included in the measurem

receivable (See SFFAS 54, Pars. 41 and 54.) Reporting entity management should consult with appropriate procurement 

judgment, to make determinations on what payments are fixed and what are variable. Proprietary Interest Rates - Amortization of Discount on Lease Liability/Receivable - Interest Expense/Revenue Future lease payments should be discounted using the interest rate the lessor charges the lessee. When the rate is not sallows agencies flexibility to use a rate based on a recent marketable Treasury security rate, or a historical average interessecurities of a similar maturity to the term of the lease: “If the interest rate is not stated in the lease, the interest rate shoulon marketable Treasury securities at the commencement of the lease term (or at the subsequent financial reporting date), term of the lease.” (SFFAS 61, Par. 6) Methodology for selecting interest rates based on marketable Treasury securiti

should be consistent from period to period. In subsequent reporting periods, the Lessee should calculate the amortization of the discount on the lease liability and rec

expense for the period. Any payments made should be allocated first to the accrued interest liability and then to the lease Likewise, the Lessor should calculate the amortization of the discount on the receivable and report that amount as in(SFFAS 54, Par. 60.) Lease Amortization & Lessor Unearned Revenue During the lease term, the Lessee’s lease asset should be amortized in a systematic and rational manner, over the shor

useful life of the underlying asset (See SFFAS 54, Par. 50, and SFFAS 60, Pars. 20-21.) Meanwhile, the Lessor should recognize the unearned revenue in a similar manner. (See SFFAS 54, Par. 64, as amended 
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Modifications/Terminations In the event a right-to-use lease is terminated before the end of the contractual lease term (other than by a transfer underlying asset), a Lessee should account for the termination by reducing the carrying values of the lease liability and tha gain/loss for the difference. Likewise, lessors should reduce the carrying value of the lease receivable and the related a gain/loss for the difference. Contracts or Agreements Containing Nonlease and Lease Components For contracts or agreements containing both nonlease and lease components, in which the purpose of the contract is primar

component(s), entities may elect to apply the practical accommodation in SFFAS 62. This practical accommodation allows for the entity to treat the entire contact (including lease components) as expense/recognize as revenue the lease payments, rather than recognizing both expenses/revenue and lease assets/liabilof SFFAS 54. (See SFFAS 62 for complete details on how to make the election, along with how to apply certain reporting Entity management must use professional judgement to assess the nature of contracts or agreements to make the mosprimary purpose of the contract. (SFFAS 62, Par. 5) 

Budgetary Accounting Requirements & Agency Decision Points While proprietary accounting requirements for leases are transformed by SFFAS 54, Leases, budgetary accounting requireand continue to be guided by the lease scorekeeping rule developed by OMB, CBO, and the House and Senate Budconnection with the Budget Enforcement Act of 1990, and guidance regarding this rule provided in OMB Circular No. Treatment Of Lease-Purchases and Leases of Capital Assets. For budgetary accounting, entity management is responsible for exercising professional judgement and collaborating wi

certain determinations before establishing budgetary accounting treatment, including: 1) Operating vs. Capital Lease (as defined by Appendix B of OMB Circular No. A-11); 

2) Budgetary Lease Term, with consideration for Cancellation Clauses;3) The Budgetary Interest Rate is selected per OMB Circular No. A-94, Appendix C guidance; and

4) Budget Authority and Outlays.Operating/Capital/Lease Purchase Reporting entities should apply professional judgment, consistent with the guidance in Appendix B of OMB CircuLeases/Capital Leases criteria to discern the correct budgetary treatment of each lease contract. The differences in bu
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between Operating and Capital leases are extensive; see Appendix B of OMB Circular No. A-11 for more details. In o

Operating lease treatment for budgetary accounting purposes, a lease must meet the following criteria established in the 

 Ownership of the asset remains with the lessor during the term of the lease and is not transferred to the Govern

of the lease term; 

 The lease does not contain a bargain-price purchase option;  The lease term does not exceed 75 percent of the estimated economic life of the asset;  The present value of the minimum contractually required payments over the life of the lease does not exceed 9

value of the asset at the beginning of the lease term; 

 The asset is a general purpose asset rather than being for a special purpose of the Government and is not built t

Government as lessee; and 

 There is a private sector market for the asset.” 

Lease Term & Cancellation Clauses When initiating lease contracts with a cancellation clause, entities are required to presume the lease will run for the full t

calculating the lease term as part of the budgetary accounting analysis necessary to distinguish between an Operating/Ca

“Cancellation clauses. It will be presumed that the lease will run for the full term of the contract, and the minimum pa

basis of the lease and other contractually required payments that will be made over the full term of the lease (inclu

Circular No. 11, Page 8 of Appendix B.) 

Budget Authority and Outlays – Operating Lease Budget Authority for Operating Leases should be recorded in an amount equal to the total contractually required paymelease, or (if there is a cancellation clause) the amount sufficient to cover first year lease and other contractually requirecosts up front. Meanwhile, outlays of Operating Leases are scored over the lease term in an amount equal to the annual 

required payments. 

“For operating leases, budget authority is required to be obligated up front in the amount necessary to cover the Governm

with the requirements of the Antideficiency Act. This will include the estimated total payments expected to arise unde

if the contract includes a cancellation clause, an amount sufficient to cover the lease and other contractually requi

plus an amount sufficient to cover the costs associated with cancellation of the contract. For each subsequent ye

is required to be obligated to cover the annual lease payment for that year plus any additional cancellation costs

the General Services Administration's Federal Buildings Fund (which is self-insuring under existing authority), only needed to cover the annual lease payment is required to be obligated.” 
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Right-To-Use Leases Determined to be “Operating” for Budgetary Treatment- With Cancellation Listing of USSGL Accounts Used in This Scenario:

Account Number Account Title 

Budgetary 406000 Anticipated Collections From Non-Federal Sources 411900 Other Appropriations Realized 426600 Other Actual Business-Type Collections From Non-Federal Sources 445000 Unapportioned – Unexpired Authority 449000 Anticipated Resources - Unapportioned Authority 451000 Apportionments 459000 Apportionments – Anticipated Resources – Programs Subject to Apportionment461000 Allotments – Realized Resources 480100 Undelivered Orders – Obligations, Unpaid 490100 Delivered Orders – Obligations, Unpaid 490200 Delivered Orders – Obligations, Paid Proprietary 101000 Fund Balance With Treasury 134000 Interest Receivable - Not Otherwise Classified 175000 Equipment175900 Accumulated Depreciation on Equipment193000 Lessor Lease Receivable*1193900 Allowance for Loss on Lease Receivable* 195000 Lessee Right-To-Use Lease Asset* 195900 Accumulated Amortization on Lessee Lease Assets* 214000 Accrued Interest Payable - Not Otherwise Classified 214010 Unfunded Accrued Interest Payable* 233000 Unearned Lessor Revenue* 293000 Lessee Lease Liability* 293010 Unfunded Lessee Lease Liability* 310100 Unexpended Appropriations – Appropriations Received 310700 Unexpended Appropriations - Used - Accrued 310710 Unexpended Appropriations - Used - Disbursed 

1 See Treasury Financial Manual, Volume 1, USSGL Supplements, Section II for Account Definitions of lease accounts.
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331000 Cumulative Results of Operations 

531000 Interest Revenue - Other570000 Expended Appropriations - Accrued 570010 Expended Appropriations - Disbursed 593000 Lessor Lease Revenue* 593300 Amortization of Unearned Lessor Revenue * 593900 Contra Revenue for Lessor Lease Revenue*633000 Other Interest Expense 671000 Depreciation, Amortization, and Depletion 671300 Lessee Lease Amortization* 693000 Lessee Lease Expense* 
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Key Assumptions Driving Proprietary Accounting Entries: 

Lease Term  A federal reporting entity (Lessee) signs a 5-year lease with a non-federal entity (Lessor) for the right to control/r

illustration purposes, the scenario also shows posting logic for a federal Lessor working with a non-federal Lesse

 For illustration purposes, the lease is assumed to begin at the start of the fiscal year, 10/01/2023. No purchase option probable of being exercised exists.  The lease includes an availability of funds cancellation clause that allows the Lessee to cancel the lease on an ann

lease payments are not appropriated. Management determines it is not probable that the clause will be exercised. 

 The lease contains a fixed $5,000 cancellation penalty.  Since management determines the cancellation clause is not probable of being exercised, the lease term is calcula

is determined to be a Right-To-Use Lease. 

 The Lessor charges the Lessee the Interest Rate on marketable Treasury securities as of the commencement of th

Paragraph 6 guidance, which for purposes of this scenario is assumed to be 10.00%. 

 All monthly payments are made and considered disbursed at the last business day of the month – This scenario a

directly to vendor and that there is no lag time between disbursement, authorization, and receipt. 

Lease Asset/Liability Calculation  The contract amount is $120,000 ($2,000 monthly payments x 60 months.)  Management calculates the Present Value of all expected fixed payments to be $94,131. The Lessor charges the 

10.00%. 

 The Lessor already has equipment on its Balance Sheet valued at $300,000 with $150,000 Accumulated DepreciFixed & Variable Payments  Management determines the lease contains both fixed and variable payments. Fixed payments include a minimu

by the lease contract, and lease payments (including interest) are paid at the start of the year. 

 In addition, there is a $12 per hour charge for the use of the equipment, which management deems to be a Variab

usage of the underlying asset. This variable payment will not to be included in the Lease Liability/Lease Receiva

(Also See Technical Release 20, Lease Implementation Guidance, Par. 48 for more information on Variable Paym

 Management determines that the Fixed minimum lease payment is "contractually required payments" per OMB C Management determines that the Variable costs related to the usage of the equipment are also "contractually requ

Circular A-11, Appendix B, and estimates these to be $1,500 for each year of the lease term. 
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Key Assumptions Driving Budgetary Accounting Entries: 

Budgetary Authority  The Lessee received a direct appropriation and is working from a multi-year appropriated TAFS from a general f

Agency management has concluded that appropriations language allows the budget authority to remain available contractually required payments over the full term of the lease. 

 For illustration purposes, the lease is assumed to begin at the start of the fiscal year, 10/01/2023. The Lessor charges the Lessee the Interest Rate from OMB Circular No. A-94, Appendix C guidance, which for 

assumed to be 10.00%. 

 Management determines that the Fixed costs for the lease of equipment are "contractually required payments" pe

Appendix B. 

 The lease is not funded by the General Services Administration's Federal Buildings Fund. Budgetary Lease Capital/Operating Determination  Management determines the lease to be an “Operating lease” for budgetary purposes with a cancellation claus

should include “an amount sufficient to cover the lease and other contractually required payments for the first ye

to cover the costs associated with cancellation of the contract.” For each subsequent year, sufficient budget authobligated to cover the annual lease payment for that year plus any additional cancellation costs. 

Budgetary Outlays  As an Operating lease per budgetary treatment, leases will be scored over the lease term in an amount equal to th

contractually required payments. 

Cancellation Clauses  The lease includes an availability of funds cancellation clause, with a fixed $5,000 cancellation penalty. For this 

assumption of additional cancellation costs in subsequent years. 

 The lease does not contain renewal/purchase options, and is not associated with government land. 
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Proprietary Amortization Table 

 Contract Amount $120,000  5-Year Lease with 60 monthly payments of $2,000 each  Interest Rate of 10.0% for Proprietary Accounting  Present Value of Payments = $94,131  Lessee Right-To-Use- Asset & Lease Liability amount: $94,131  For illustration purposes, the lease begins at the start of the fiscal year, 10/01/23.  Monthly payments are considered to be disbursed on the last business day of each month. 

Schedule of Budgetary Resources/Contractually Requirement Payments 

 Year 1 Budget Authority = 12 contractually-required monthly payments of $2,000 each = $24,000, plus $1,5

Variable Costs, plus $5,000 cancellation penalty = $30,500. 

 Year 2 Budget Authority = 12 contractually-required monthly payments of $2,000 each = $24,000, plus $1,5

Variable Costs = $25,500. 

 Interest Rate of 10.0% for Budgetary Accounting.  Budget Outlays correspond to the monthly fixed payments over the lease term. 

Disclaimer The below guidance is intended to serve as a reference only based on a finite number of underlying assumptions. It is icomprehensive posting logic for every leasing activity. Agencies should have a thorough understanding of authoritative 60, and SFFAS 61 and apply other factors, including but not limited to certain prepayments, accruals, etc. As stated aboexercise professional judgement and collaborate within their agency to reach determinations of lease activities on a 

establishing accounting treatment. Entity management should document these decisions and incorporate them into management’s existing OMB CirculaResponsibility for Enterprise Risk Management and Internal Control,” Appendix A, procedures. 
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FISCAL YEAR 1 - Right-To-Use Leases; “Operating” for Budgetary Treatment; With A CancelLessee Accounting – FY 1 

1. The Lessee records the enactment of appropriations in Year 1 of the 5-year Operating lease. The lease includes a cancellation Per OMB Circular No. A-11, Appendix B, budget authority for leases considered “Operating leases” on the budgetary side with a cto be obligated in an amount sufficient to cover the lease and other contractually required payments for the first year, plus canceAuthority = Year 1 Lease P&I Payment of $24,000; + $1,500 Estimated variable payments for the usage of the equipment; $30,500.)Lessee - Enactment of appropriation for Year 1. Debit Budgetary Entry 411900 Other Appropriations Realized  445000 Unapportioned - Unexpired Authority Proprietary Entry101000 (G) Fund Balance With Treasury 310100 (G) Unexpended Appropriations – Appropriations Received 

30,500 

30,500 

2. The Lessee records budgetary authority apportioned by the Office of Management and Budget and available for allotment in YLessee Debit Budgetary Entry 445000 Unapportioned - Unexpired Authority  451000 Apportionments Proprietary EntryNone 

30,500 
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3. The Lessee records the allotment of authority in Year 1. Lessee Debit Budgetary Entry 451000 Apportionments  461000 Allotments – Realized Resources Proprietary EntryNone 

30,500 

4. The lease contract is signed by both parties. The Lessee records current-year undelivered orders without an advance. Lessee Debit Budgetary Entry 461000 Allotments – Realized Resources  480100 Undelivered Orders – Obligations, Unpaid Proprietary EntryNone 

30,500 

5. The Lessee takes control over the use of the equipment. A Lease Asset and Lease Liability are recorded per SFFAS 54, Par. 40 $15,274 of the lease liability (principal) is covered from the Year 1 appropriation. $78,857 of the lease liability will be funded by recorded as an Unfunded Lease Liability. ($94,131 - $15,274 = $78,857.)Lessee – Recognition of Right-to-Use Lease Asset Debit Budgetary Entry None Proprietary Entry195000 Lessee Right-To-Use Lease Asset  293000 Lessee Lease Liability  293010 Unfunded Lease Liability 

94,131 
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6a. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7a. The Lessee records accrued interest for month 1, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 1. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

784 

8a. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 (N) Accrued Interest Payable – Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  570010 Expended Appropriations – Disbursed  310700 Unexpended Appropriations - Used - Accrued 

2,000 1,216 

784 

2,000 2,000 

Ending Lease Liability Balance = $92,9159a. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 1. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $92,562
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6b. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7b. The Lessee records accrued interest for month 2, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 2. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

774 

8b. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,226  774 2,000 2,000 

Ending Lease Liability Balance = $91,6899b. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 3. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $90,993
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6c. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7c. The Lessee records accrued interest for month 3, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 3. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

764 

8c. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,236  764 2,000 2,000 

Ending Lease Liability Balance = $90,4549c. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 3. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $89,424
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6d. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7d. The Lessee records accrued interest for month 4, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 4. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

754 

8d. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,246  754 2,000 2,000 

Ending Lease Liability Balance = $89,2079d. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 4. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $87,855
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6e. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7e. The Lessee records accrued interest for month 5, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 5. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

743 

8e. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,257  743 2,000 2,000 

Ending Lease Liability Balance = $87,9519e. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 5. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $86,287
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 21 of 79 

6f. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7f. The Lessee records accrued interest for month 6, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 6. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

733 

8f. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,267  733 2,000 2,000 

Ending Lease Liability Balance = $86,6849f. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 6. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $84,718
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 22 of 79 

6g. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7g. The Lessee records accrued interest for month 7, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 7. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

722 

8g. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,278  722 2,000 2,000 

Ending Lease Liability Balance = $85,4069g. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 7. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $83,149
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 23 of 79 

6h. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7h. The Lessee records accrued interest for month 8, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 8. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

712 

8h. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,288  712 2,000 2,000 

Ending Lease Liability Balance = $84,1189h. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 8. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $81,580
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 24 of 79 

6i. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7i. The Lessee records accrued interest for month 9, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 9. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

701 

8i. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,299  701 2,000 2,000 

Ending Lease Liability Balance = $82,8199i. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 9. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $80,011
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 25 of 79 

6j. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7j. The Lessee records accrued interest for month 10, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability expense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 10. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

690 

8j. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,310  690 2,000 2,000 

Ending Lease Liability Balance = $81,5089j. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 10. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $78,442
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 26 of 79 

6k. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7k. The Lessee records accrued interest for month 11, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability expense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 11. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

679 

8k. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,321 

 679 

2,000 2,000 

Ending Lease Liability Balance = $80,1889k. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 11. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $76,873
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 27 of 79 

6l. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

7l. The Lessee records accrued interest for month 12, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability expense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 12. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

668 

8l. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,332  668 2,000 2,000 

Ending Lease Liability Balance = $78,8569l. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease asand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 12. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $75,305
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 28 of 79 

10. At the end of Year 1, the Lessee calculates 125 hours of equipment usage at $12/ hour ($1,500.) Variable payments should be the period incurred (SFFAS 54, Par. 41.) Budget Authority was received in Year 1’s appropriation. The invoice is due for paymenLessee - Accrual of Variable Expenses Incurred in Year 1 (Budget Authority received in Year 1.) Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry693000 (N) Lessee Lease Expense  211000 (N) Accounts Payable  310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Used - Accrued 

1,500 

 1,500 

1,500 

11. The Lessee records the closing of lease and interest expenses to cumulative results of operations. Lessee Debit Budgetary Entry None Proprietary Entry331000 Cumulative Results of Operations  693000 (N) Lessee Lease Expense  671300 Lessee Lease Amortization  633000 (N) Other Interest Expense 

29,052 

12. The Lessee records the closing of expended appropriation to cumulative results of operations, along with the closing of fiscal-appropriations. Lessee Debit 
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 29 of 79 

Budgetary Entry None Proprietary Entry570000 Expended Appropriations - Used - Accrued 570010 Expended Appropriations – Disbursed  331000 Cumulative Results of Operations 310000 Unexpended Appropriations – Cumulative  310700 Unexpended Appropriations - Used - Accrued  310710 Unexpended Appropriations - Used – Disbursed 310100 (G) Unexpended Appropriations – Appropriations Received  310000 Unexpended Appropriations - Cumulative 

 1,500  24,000  25,500 

30,500 

13. The Lessee records the closing of paid delivered orders to total actual resources. Lessee Debit Budgetary Entry 490200 Delivered Orders – Obligations, Paid  420100 Total Actual Resources, Collected Proprietary EntryNone 

24,000 

14. The Lessee records the consolidation of actual net-funded resources. Lessee Debit Budgetary Entry 420100 Total Actual Resources, Collected  411900 Other Appropriations Realized 

Proprietary Entry

 None 

30,500 
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Page 30 of 79 

Lessor Accounting – FY 1

1. In Year 1, the Lessor records anticipated collections. (The amount of expected Year 1 monthly payments is $24,000.) Lessor Debit Budgetary Entry 406000 Anticipated Collections From Non-Federal Sources  449000 Anticipated Resources - Unapportioned Authority Proprietary Entry None 

24,000 

2. The Lessor records the apportionment approval by OMB of anticipated authority. Lessor Debit Budgetary Entry 449000 Anticipated Resources - Unapportioned Authority  459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment Proprietary Entry None 

24,000 

3. The Lessee takes control over the use of the equipment; The lease term is 5 years. A Lease Receivable and Unearned Revenue Also per SFFAS 54, Par. 56, the Lessor reduces the lease receivable by a provision for any uncollectible amounts. Lessor – Recognition of Lease Receivable Debit Budgetary Entry None Proprietary Entry 193000 Lessor Lease Receivable  233000 Lessor Lease Unearned Revenue 593900 Contra Revenue for Lessor Lease Revenue  193900 Allowance for Loss on Lease Receivable 

94,131 

2,000 
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Page 31 of 79 

4a. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 1. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 1, Month 1 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

784 

5a. In month 1, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of first Monthly Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources*  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

*Note- Lessors may elect to record USSGL 426400 “Actual Collections of Rent” rather than 426600, based on management’s judgeme

Ending Lease Receivable Balance of USSGL 193000 = $92,915 

6a. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 1, Month 1 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 32 of 79 

4b. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 2. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 1, Month 2 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

774 

5b. In month 2, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of second Monthly Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $91,6896b. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 1, Month 2 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

 1,569 
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 33 of 79 

4c. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 3. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 1, Month 3 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

764 

5c. In month 3, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of third Monthly Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $90,4546c. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 1, Month 3 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 34 of 79 

4d. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 4. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 1, Month 4 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

764 

5d. In month 4, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of fourth Monthly Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $89,2076d. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 1, Month 4 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 35 of 79 

4e. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 5. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 1, Month 5 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

743 

5e. In month 5, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of fifth Monthly Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $87,9516e. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 1, Month 5 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 36 of 79 

4f. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 6. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 1, Month 6 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

733 

5f. In month 6, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of sixth Monthly Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $86,6846f. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 1, Month 6 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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*(For simplicity, the recurring entries of Lessor Receipts for Months 7-12 are not illustrated, but amounts can be seen in 

7. The Lessee calculates 125 hours of equipment usage at $12/ hour in Year 1 = $1,500. Variable payments should be recognizewhich they are earned (SFFAS 54, Par. 57.) The invoice is due for payment at the beginning of Year 2. Lessor - Accrual of Lease Revenue for Variable Payments Earned in Year 1. Debit Budgetary Entry None Proprietary Entry131000 (N) Accounts Receivable  593000 (N) Lessor Lease Revenue 

1,500 

8. In Year 1, the Lessor records depreciation expense on equipment it owns (the underlying asset within the lease.) $300,000 cost Lessor Debit Budgetary Entry None Proprietary Entry671000 (N) Depreciation, Amortization, and Depletion  175900 Accumulated Depreciation on Equipment 

15,000 

9. The Lessor records the closing of revenue to cumulative results of operations. Lessor Debit Budgetary Entry None Proprietary Entry593300 Amortization of Unearned Lessor Revenue 593000 (N) Lessor Lease Revenue 531000 Interest Revenue – Other  593900 Contra Revenue for Lessor Lease Revenue 

331000 Cumulative Results of Operations 

18,826  1,500  8,726 
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10. The Lessor records the closing of depreciation expense to cumulative results of operations. Lessor Debit Budgetary Entry None Proprietary Entry331000 Cumulative Results of Operations  671000 Depreciation, Amortization, and Depletion 

15,000 

11. The Lessor records the closing of unobligated balances in programs subject to apportionment to unapportioned authority. Lessor Debit Budgetary Entry 461000 Allotments – Realized Resources  445000 Unapportioned – Unexpired Authority Proprietary EntryNone 

24,000 

12. The Lessor records the consolidation of actual net-funded resources. Lessor Debit Budgetary Entry 420100 Total Actual Resources, Collected  426600 Other Actual Business-Type Collections From Non-Federal Sources 

Proprietary Entry

 None 

24,000 
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Fiscal Year 1 Post-Closing Adjusted Trial Balance: 

FISCAL YEAR 1 POST-CLOSING LESSEE 

Account Description Debit Credit Budgetary420100 Total Actual Resources, Collected 6,500 - 445000 Unapportioned - Unexpired Authority - - 480100 Undelivered Orders 

– Obligations, Unpaid - 5,000 

490100 Delivered Orders, Obligations Unpaid - 1,500 490200 Delivered Orders 

– Obligations, Paid - - 

Total 6,500 6,500 Proprietary 101000 (G) Fund Balance With Treasury 6,500 - 131000 Accounts Receivable - - 175000 Equipment - - 175900 Acc. Depreciation on Equipment - - 193000 Lessor Lease Receivable - - 193900 Allowance for Loss on Lease Receivable - - 195000 Lessee Right-To-Use Lease Asset 94,131 - 195900 Accumulated Amortization on Lessee Lease Assets - 18,826 211000 Accounts Payable - 1,500 233000 Unearned Lessor Revenue - - 293000 Lessee Lease Liability - - 293010 Unfunded Lessee Lease Liability - 78,857 310000 Unexpended Appropriations - Cumulative - 5,000 331000 Cumulative Results of Operations 3,552 - Total 104,183 104,183 
RTU LEASE GUIDANCE: BUDGETARY OPERATI

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Year 1 Financial Statements: 

STANDARDIZED BALANCE SHEET – YEAR 1 

Line No. YEAR 1 LESSEE 

 Assets (Note 2)  Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 7 Total intra-governmental assets 

Other than intra-governmental 

9 Accounts receivable, net (Notes 6 and 7) (131000

N) 

12 General and right-to-use property, plant, and equipment, net (Note 10) (175000E, 175900E, 195000E, 

195900E) 

17 Other assets (Note 12) (193000E, 193900E) 18 Total other than intra-governmental 19 Total assets 

 Liabilities (Note 13)  Other than intra-governmental 

28 Accounts pa

yable (211000

N) 

36 Advances from others and deferred revenue (233000

N) 

37 Other liabilities (Notes 18, 19, and 20) (293010E) 38 Total other than intra-governmental 39 Total liabilities 

 Net position 

41.2 Unexpended appropriations - Funds from other than Dedicated Collections (310000E) 42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 

43 Total net position 44 Total liabilities and net position 

STATEMENT OF NET COST – YEAR 1 

Line No. YEAR 1 LESSEE 

 Gross Program Costs (Note 21): 

1 Gross costs (633000E, 671000E, 671300E, 693000E) 2 Less: earned revenue (531000E, 593000E, 593300E, 593900E) 3 

Net pro

gram costs 

5 Net pro

gram costs includin

g Assumption Chan

ges: 

8 Net cost of operations 
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STATEMENT OF CHANGES IN NET POSITION – YEAR 1 

Line No. YEAR 1 LESSEE 

 Unexpended Appropriations: 

4 Appropriations received (310100E) 7 Appropriations used (310700E, 310710E) 8 Net Chan

ge in Unexpended Appropriations (calc.) 

9 Total Unexpended Appropriations 

– Endin

g (calc.) 

Cumulative Results of Operations:

10 Be

ginnin

g Balances (331000B) 

12 Be

ginnin

g balances, as adjuste

d 

14 Appropriations used (570000E, 570010E) 21 Revenue From (Net Cost of) Operations (+/-) 22 

Net Chan

ge in Cumulative Results of Operations 

23 Cumulative Results of Operations 

– Endin

g 

24 Net Position (calc.) 
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 42 of 79 

SF 133 AND SCHEDULE P – REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES AND BUD

FINANCING SCHEDULE – YEAR 1 

Line 

No. 

YEAR 1 LESSEE 

BUDGETARY RESOURCES SF 133 Schedule P 

0900 Total new obligations, unexpired accounts (480100E, 490100E, 490200E) - 30,50

Budget authority: Appropriations: Discretionary: 

1100 Appropriation (411900E) 30,500 30,501160 Appropriation, discretionary (total) 30,500 30,501700 Collected (426600E) - 1750 Spendin

g authorit

y from offsettin

g collections, discretionary (total) - 

1900 Bud

get authority (total) 30,500 30,50

1910 Total budgetary resources (calc.) 30,500 1930 Total bud

getary resources available - 30,50

1941 Unexpired unobli

gated balance, end of 

year (461000E) 

STATUS OF BUDGETARY RESOURCES New obligations and upward adjustments: Direct: 

2002 Cate

gory B (b

y project) (480100E, 4901000E, 490200E) 30,500 

2004 Direct obli

gations (total) (calc.) 30,500 

2170 

New obli

gations, unexpired accounts (480100E, 4901000E, 490200E) 30,500 

2190 

New obli

gations and upward adjustments (total) 30,500 

2201 Available in the current period (461000E) - 2412 Unexpired unobli

gated balance: end of 

year (calc.) - 

2490 Unobli

gated balance, end of 

year (total) - 

2500 Total budgetary resources (calc.) 30,500 2501 Subject to apportionment unobligated balance, end of year (461000E) 

CHANGE IN OBLIGATED BALANCE Unpaid obligations: 

3010 

New obli

gations, unexpired accounts (480100E, 4901000E, 490200E) 30,500 30,50
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3020 Outla

ys (

gross) (-) (490200E) (24,000) (24,000

3050 Unpaid obli

gations, end of 

year (480100E, 490100E) 6,500 6,50

3200 Obli

gated balance, end of 

year (= or -) 6,500 6,50

BUDGET AUTHORITY AND OUTLAYS, NET Discretionary: 

4000 Bud

get authority, gross (calc.) 30,500 30,50

Outlays, gross

4010 Outla

ys from new discretionary authorit

y (490200E) 24,000 24,00

4020 Outla

ys, 

gross (total) 24,000 24,00

Offsets against gross budget authority and outlays:Offsetting collections (collected) from: 

4033 

Non-Federal sources (-) (426600E) - 

4040 Offsets a

gainst 

gross bud

get authorit

y and outla

ys (-) (calc.) - 

4070 Bud

get authority, net (discretionary) (calc.) 30,500 30,50

4080 Outla

ys, net (discretionar

y) (calc.) 24,000 24,00

4180 Bud

get authority, net (total) (calc.) 30,500 30,50

4190 Outla

ys, net (total) (calc.) 24,000 24,00

Unobligated balance: 

5321 Direct unobli

gated 

balance, end of 

year (461000E) - 

5323 Discretionary unobli

gated balance, end of 

year (461000E) - 

5341 Direct obli

gated balance, end of 

year (480100E, 490100E) 6,500 6,50

5343 Discretionary obli

gated 

balance, end of 

year (480100E, 490100E) 6,500 6,50
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Year 1 Reclassified Financial Statements: 

STANDARDIZED BALANCE SHEET – YEAR 1 

Line No. YEAR 1 LESSEE 

 Assets (Note 2)  Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 7 Total intra-governmental assets 

Other than intra-governmental 

9 Accounts receivable, net (Notes 6 and 7) (131000

N) 

12 General and right-to-use property, plant, and equipment, net (Note 10) (175000E, 175900E, 195000E, 

195900E) 

17 Other assets (Note 12) (193000E, 193900E) 18 Total other than intra-governmental 19 Total assets 

 Liabilities (Note 13)  Other than intra-governmental 

28 Accounts pa

yable (211000

N) 

36 Advances from others and deferred revenue (233000

N) 

37 Other liabilities (Notes 18, 19, and 20) (293010E) 38 Total other than intra-governmental 39 Total liabilities 

 Net position 

41.2 Unexpended appropriations - Funds from other than Dedicated Collections (310000E) 42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 

43 Total net position 44 Total liabilities and net position 
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RECLASSIFIED STATEMENT OF NET COST – YEAR 1 

Line No. YEAR 1 LESSEE 

1 Gross cost 2 Non-federal gross cost (633000E, 671000E, 671300E, 693000E) 6 Total non-federal gross cost (calc.) 9 Department total gross cost (calc.) 

10 Earned revenue 11 

Non-federal earned revenue (531000E, 593000E, 593300E, 593900E) 

14 Department total earned revenue (calc.) 15 Net cost of operations (calc.) 

RECLASSIFIED STATEMENT OF OPERATIONS AND CHANGES IN NET POSITION – YEAR 1 

Line No. YEAR 1 LESSEE 

1 Net position, beginning of period (310000B, 331000B) 7 Financing sources: 

7.1 Appropriations received as adjusted (rescissions and other adjustments) (RC 41)/1 (310100E) 7.2 Appropriations used (RC 39) (310700E, 310710E) 7.3 Appropriations expended (RC 38)/1 (570000E, 570010E) 

7.30 Total financing sources (calc.) 

8 Revenue From (Net cost of) Operations (+/-) 9 Net position, end of period (calc.) 
RTU LEASE GUIDANCE: BUDGETARY OPERATI

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FISCAL YEAR 2 - Right-To-Use Leases; “Operating” for Budgetary Treatment; With A CancelLessee Accounting – FY 2 

1. The Lessee receives funding and appropriation for Year 2, and records the enactment of appropriations in Year 2 of the 5-year Circular No. A-11, Appendix B, budget authority for leases considered “Operating leases” for budgetary treatment with a cancellaobligated in an amount sufficient to cover the lease and other contractually required payments for the year, plus cancellation costs(Year 2 Lease Payment of $24,000; + $1,500 Estimated variable payments for the usage of the equipment = $25,500.) The $already obligated in Year 1, and is not adjusted.Lessee - Enactment of appropriation for Year 2. Debit Budgetary Entry 411900 Other Appropriations Realized  445000 Unapportioned - Unexpired Authority Proprietary Entry101000 (G) Fund Balance With Treasury 310100 (G) Unexpended Appropriations – Appropriations Received 

25,500 

25,500 

2. The Lessee records budgetary authority apportioned by the Office of Management and Budget and available for allotment in YLessee Debit Budgetary Entry 445000 Unapportioned - Unexpired Authority  451000 Apportionments Proprietary EntryNone 

25,500 
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3. The Lessee records the allotment of authority in Year 2. Lessee Debit Budgetary Entry 451000 Apportionments  461000 Allotments – Realized Resources Proprietary EntryNone 

25,500 

4. The Lessee records current-year undelivered orders without an advance. Lessee Debit Budgetary Entry 461000 Allotments – Realized Resources  480100 Undelivered Orders – Obligations, Unpaid Proprietary EntryNone 

25,500 
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5. In Year 2, the Lessee pays the variable lease payment to Lessor for the accrued usage of the equipment in Year 1. The Lessee rappropriations for the second year. Lessee - Disbursement of Payment to Lessor for Variable Expenses Incurred and Accrued in Year 1. 

Debit 

Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry211000 (N) Accounts Payable  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used - Disbursed 570000 Expended Appropriations - Used - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations - Disbursed 

1,500 1,500 1,500 1,500 

6. The Lessee continues control over the use of the equipment; the cancellation clause was not used. After receiving budget authoappropriations, the Lessee reclassifies the amount of principal due in Year 2 from Unfunded Lease Liability to Lease Liability. (SLessee Debit Budgetary Entry None Proprietary Entry293010 Unfunded Lessee Lease Liability  293000 Lessee Lease Liability 

16,874 
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Page 49 of 79 

7a. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8a. The Lessee records accrued interest for month 1, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 1. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

657 

9a. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,343  657 2,000 2,000 

Ending Lease Liability Balance = $77,51310a. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 1. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $73,736
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 50 of 79 

7b. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8b. The Lessee records accrued interest for month 2, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 2. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

646 

9b. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,354  646 2,000 2,000 

Ending Lease Liability Balance = $76,15910b. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 3. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $72,167
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 51 of 79 

7c. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8c. The Lessee records accrued interest for month 3, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 3. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

635 

9c. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,365  635 2,000 2,000 

Ending Lease Liability Balance = $74,79410c. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 3. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $70,598
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 52 of 79 

7d. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8d. The Lessee records accrued interest for month 4, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 4. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

623 

9d. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,377  623 2,000 2,000 

Ending Lease Liability Balance = $73,41710d. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 4. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $69,029
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 53 of 79 

7e. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8e. The Lessee records accrued interest for month 5, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 5. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

612 

9e. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,388  612 2,000 2,000 

Ending Lease Liability Balance = $72,02910e. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 5. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $67,460
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 54 of 79 

7f. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8f. The Lessee records accrued interest for month 6, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 6. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

600 

9f. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,400  600 2,000 2,000 

Ending Lease Liability Balance = $70,62910f. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 6. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $65,892
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Page 55 of 79 

7g. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8g. The Lessee records accrued interest for month 7, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 7. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

589 

9g. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,411  589 2,000 2,000 

Ending Lease Liability Balance = $69,21810g. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 7. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $64,323
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Page 56 of 79 

7h. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8h. The Lessee records accrued interest for month 8, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 8. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

577 

9h. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,423  577 2,000 2,000 

Ending Lease Liability Balance = $67,79510h. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 8. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $62,754
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Page 57 of 79 

7i. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8i. The Lessee records accrued interest for month 9, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability aexpense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 9. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

565 

9i. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,435  565 2,000 2,000 

Ending Lease Liability Balance = $66,36010i. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 9. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $61,185
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Page 58 of 79 

7j. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8j. The Lessee records accrued interest for month 10, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability expense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 10. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

553 

9j. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,447  553 2,000 2,000 

Ending Lease Liability Balance = $64,91310j. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 10. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $59,616
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Page 59 of 79 

7k. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8k. The Lessee records accrued interest for month 11, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability expense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 11. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

541 

9k. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,459  541 2,000 2,000 

Ending Lease Liability Balance = $63,45410k. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 11. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $58,047
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Page 60 of 79 

7l. The Lessee records the amount accrued during the month for the right-to-use provided by the Lessor, per the contractually required payment schedule. Lessee – Budgetary Accrual of fixed monthly, contractually required payment. Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Accrued 

2,000 2,000 

8l. The Lessee records accrued interest for month 12, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability expense for the period. (SFFAS 54, Par. 43) Lessee - Accrual of Interest Expense for Month 12. Debit Proprietary Entry633000 Other Interest Expense  214000 Accrued Interest Payable – Not Otherwise Classified 

529 

9l. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry293000 Lessee Lease Liability 214000 Accrued Interest Payable - Not Otherwise Classified  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used – Disbursed 570000 Expended Appropriations - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations – Disbursed 

2,000 1,471  529 2,000 2,000 

Ending Lease Liability Balance = $61,98210l. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease aand rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) Lessee - Amortization of Lease Asset for Month 12. Debit Budgetary Entry NoneProprietary Entry671300 Lessee Lease Amortization  195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $56,478
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Page 61 of 79 

11. The Lessee calculates 125 hours of equipment usage at $12/ hour in Year 2; Variable payments should be recognized as an ex(SFFAS 54, Par. 41.) $1,500 of Budget Authority was already received in Year 1’s appropriation. The invoice is due for paymenLessee - Accrual of Variable Expenses Incurred in Year 2 (Budget Authority received in Year 1.) Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490100 Delivered Orders – Obligations, Unpaid Proprietary Entry693000 (N) Lessee Lease Expense  211000 (N) Accounts Payable  310700 Unexpended Appropriations - Used - Accrued  570000 Expended Appropriations - Used - Accrued 

1,500 1,500 1,500 

12. At the end of Year 2 of the lease, the Lessee learns it does not receive funding/new appropriation; The lease contract is fully cLessor the $5,000 cancellation penalty. Both parties reduce the carrying values of the lease asset/liability and recognize a gain/los54, Pars. 82-83.) The carrying value of the Lessee Lease Liability is $61,982, while the value of the Lease Asset is $56,478. Lessee – Lease Cancellation Debit Budgetary Entry 480100 Undelivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry693000 (N) Lessee Lease Expense  101000 Fund Balance with Treasury 310710 Unexpended Appropriations - Used - Disbursed  570010 Expended Appropriations - Disbursed 293010 Unfunded Lease Liability 195900 Accumulated Amortization on Lessee Lease Assets  195000 Lessee Right-To-Use Lease Asset  711000 Gain on Disposition of Assets - Other 

5,000 5,000 5,000 

61,982 37,652 
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Page 62 of 79 

13. The Lessee pays variable lease payment to Lessor for the accrued usage of the equipment in Year 2. The Lessee records the dLessee - Disbursement of Payment to Lessor for Variable Expenses Incurred and Accrued in Year 2. 

Debit 

Budgetary Entry 490100 Delivered Orders – Obligations, Unpaid  490200 Delivered Orders – Obligations, Paid Proprietary Entry211000 (N) Accounts Payable  101000 (G) Fund Balance With Treasury 310710 Unexpended Appropriations - Used - Disbursed 570000 Expended Appropriations - Used - Accrued  310700 Unexpended Appropriations - Used - Accrued  570010 Expended Appropriations - Disbursed 

1,500 1,500 1,500 1,500 

14. The Lessee records the closing of lease and interest expenses, along with gains, to cumulative results of operations. Lessee Debit Budgetary Entry None Proprietary Entry331000 Cumulative Results of Operations  693000 (N) Lessee Lease Expense  671300 Lessee Lease Amortization  633000 Other Interest Expense 711000 Gain on Disposition of Assets - Other  331000 Cumulative Results of Operations 

32,452 

5,503 

15. The Lessee records the closing of expended appropriation to cumulative results of operations, along with the closing of fiscal-appropriations. Lessee Debit 
RTU LEASE GUIDANCE: BUDGETARY OPERATI

Page 63 of 79 

Budgetary Entry None Proprietary Entry570010 Expended Appropriations – Disbursed  570000 Expended Appropriations – Accrued  331000 Cumulative Results of Operations 310000 Unexpended Appropriations – Cumulative 310700 Unexpended Appropriations - Used – Accrued  310710 Unexpended Appropriations - Used – Disbursed 310100 (G) Unexpended Appropriations – Appropriations Received  310000 Unexpended Appropriations - Cumulative 

32,000 30,500  1,500 25,500 

16. The Lessee records the closing of paid delivered orders to total actual resources. Lessee Debit Budgetary Entry 490200 Delivered Orders – Obligations, Paid  420100 Total Actual Resources, Collected Proprietary EntryNone 

32,000 

17. The Lessee records the consolidation of actual net-funded resources. Lessee Debit Budgetary Entry 420100 Total Actual Resources, Collected  411900 Other Appropriations Realized 

Proprietary Entry

 None 

25,500 
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Page 64 of 79 

Lessor Accounting – FY 2

1. In Year 2, the Lessor records anticipated collections. (The amount of expected Year 2 monthly payments is $24,000, plus variable usage feLessor Debit Budgetary Entry 406000 Anticipated Collections From Non-Federal Sources  449000 Anticipated Resources - Unapportioned Authority Proprietary Entry None 

25,500 

2. The Lessor records the apportionment approval by OMB of anticipated authority. Lessor Debit Budgetary Entry 449000 Anticipated Resources - Unapportioned Authority  459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment Proprietary Entry None 

25,500 

3. In Year 2, the Lessee pays variable lease payment to Lessor for the accrued usage of the equipment in Year 1, and the Lessor records the recLessor - Receipt of Payment from Lessee for Variable Payments Earned in Year 1. Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  131000 (N) Accounts Receivable 

1,500 1,500 1,500 1,500 
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Page 65 of 79 

4a. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 1. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 2, Month 1 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

657 

5a. In month 1, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of Year 2, Month 1 Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $77,5136a. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 2, Month 1 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 66 of 79 

4b. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 2. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 2, Month 2 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

646 

5b. In month 2, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of Year 2, Month 2 Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $76,1596b. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 2, Month 2 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

 1,569 
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Page 67 of 79 

4c. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 3. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 2, Month 3 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

635 

5c. In month 3, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of Year 2, Month 3 Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $74,7946c. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 2, Month 3 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 68 of 79 

4d. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 4. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 2, Month 4 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

623 

5d. In month 4, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of Year 2, Month 4 Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $73,4176d. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 2, Month 4 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 69 of 79 

4e. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 5. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 2, Month 5 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

612 

5e. In month 5, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of Year 2, Month 5 Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $72,0296e. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 2, Month 5 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 70 of 79 

4f. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 6. (SFFAS 54, Par. 60) Lessor - Accrual of Interest Revenue for Year 2, Month 6 Debit Budgetary Entry None Proprietary Entry134000 Interest Receivable - Not Otherwise Classified  531000 Interest Revenue - Other 

600 

5f. In month 6, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. Lessor - Receipt of Year 2, Month 6 Lease Payment Debit Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  134000 Interest Receivable - Not Otherwise Classified  193000 Lessor Lease Receivable 

2,000 2,000 2,000 2,000 

Ending Lease Receivable Balance of USSGL 193000 = $70,6296f. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amamortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) Lessor - Recognition of Unearned Revenue for Year 2, Month 6 Debit Budgetary Entry None Proprietary Entry233000 Lessor Lease Unearned Revenue  593300 Amortization of Unearned Lessor Revenue 

1,569 
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Page 71 of 79 

*(For brevity, the recurring entries of Lessor Receipts for Months 7-12 are not illustrated, but amounts can be seen in th

7. The Lessee calculates 125 hours of equipment usage at $12/ hour in Year 2. $1,500 Variable payments should be recognized as they are earned. (SFFAS 54, Par. 57) The invoice is due for payment at the beginning of Year 3. Lessor - Accrual of Lease Revenue for Variable Payments Earned in Year 2. Debit Budgetary Entry None Proprietary Entry131000 (N) Accounts Receivable  593000 (N) Lessor Lease Revenue 

1,500 

8. In Year 2, the Lessor records depreciation expense on equipment it owns (the underlying asset within the lease.) $300,000 cost Lessor Debit Budgetary Entry None Proprietary Entry671000 (N) Depreciation, Amortization, and Depletion  175900 Accumulated Depreciation on Equipment 

15,000 

9. At the end of Year 2 of the lease, the Lessee informs the Lessor that it does not receive funding/appropriations for Year 3; The cancelled. The Lessor receives the $5,000 cancellation penalty from the Lessee. Both parties reduce the carrying values of the leaa gain/loss for the difference (SFFAS 54, Pars. 82-83.) The carrying value of the Lessor Lease Receivable is $61,983, while the L$54,479. Lessor – Lease Cancellation Debit 
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Budgetary Entry 426600 Other Actual Business-Type Collections From Non-Federal Sources  461000 Allotments – Realized Resources Proprietary Entry101000 Fund Balance with Treasury  593000 (N) Lessor Lease Revenue 233000 Lessor Unearned Revenue 193900 Allowance for Loss on Lease Receivable 721000 Loss on Disposition of Assets- Other  593900 Contra Revenue for Lessor Lease Revenue  193000 Lessor Lease Receivable 

5,000 5,000 

 56,479  2,000  5,504 

10. In Year 2 at cancellation, the Lessee pays variable lease payment to Lessor for the accrued usage of the equipment in Year 2, areceipt of this payment from Lessee. The Lessor allots the funds. Lessor - Receipt of Payment from Lessee for Variable Payments Earned in Year 2 at cancellation. Debit Budgetary Entry 406000 Anticipated Collections From Non-Federal Sources  449000 Anticipated Resources - Unapportioned Authority 449000 Anticipated Resources - Unapportioned Authority  459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment 426600 Other Actual Business-Type Collections From Non-Federal Sources  406000 Anticipated Collections From Non-Federal Sources 459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment  451000 Apportionments 451000 Apportionments  461000 Allotments – Realized Resources Proprietary Entry101000 (G) Fund Balance With Treasury  131000 (N) Accounts Receivable 

1,500 1,500 1,500 1,500 1,500 

 1,500 
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11. The Lessor records the closing of revenue to cumulative results of operations. Lessor Debit Budgetary Entry None Proprietary Entry593300 Amortization of Unearned Lessor Revenue 593000 (N) Lessor Lease Revenue 531000 Interest Revenue – Other 593900 Contra Revenue for Lessor Lease Revenue 

331000 Cumulative Results of Operations 

18,826  6,500  7,126  2,000 

12. The Lessor records the closing of depreciation expense to cumulative results of operations in Year 2. Lessor Debit Budgetary Entry None Proprietary Entry331000 Cumulative Results of Operations 721000 Loss on Disposition of Assets- Other  671000 Depreciation, Amortization, and Depletion 

15,000  5,504 

13. The Lessor records the closing of unobligated balances in programs subject to apportionment to unapportioned authority. Lessor Debit Budgetary Entry 461000 Allotments – Realized Resources  445000 Unapportioned – Unexpired Authority Proprietary EntryNone 

32,000 
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14. The Lessor records the consolidation of actual net-funded resources. Lessor Debit Budgetary Entry 420100 Total Actual Resources, Collected  426600 Other Actual Business-Type Collections From Non-Federal Sources 

Proprietary Entry

 None 

32,000 

Fiscal Year 2 Post-Closing Adjusted Trial Balance: 

FISCAL YEAR 2 POST-CLOSING LESSEE 

Account Description Debit Credit Budgetary420100 Total Actual Resources, Collected - - 445000 Unapportioned - Unexpired Authorit

y - - 

480100 Undelivered Orders 

– Obli

gations, Unpai

d - - 

490100 Delivered Orders, Obli

gations Unpai

d - - 

490200 Delivered Orders 

– Obli

gations, Paid - - 

Total - - Proprietary 101000 (G) Fund Balance With Treasury - - 175000 Equipment - - 175900 Acc. Depreciation on Equipment - - 193000 Lessor Lease Receivable - - 193900 Allowance for Loss on Lease Receivable - - 195000 Lessee Ri

g

ht-To-Use Lease Asset - - 

195900 Accumulated Amortization on Lessee Lease Assets - - 233000 Unearned Lessor Revenue - - 293000 Lessee Lease Liabilit

y - - 

293010 Unfunded Lease Liabilit

y - - 

310000 Unexpended Appropriations - Cumulative - - 331000 Cumulative Results of Operations - - Total - - 
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Year 2 Financial Statements: 

STANDARDIZED BALANCE SHEET – YEAR 2 

Line No. YEAR 2 LESSEE 

 Assets (Note 2)  Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 7 Total intra-governmental assets 

Other than intra-governmental 

12 General and ri

g

ht-to-use propert

y, plant, and equipment, net (Note 10) (175000E, 175900E) 

18 Total other than intra-governmental 19 Total assets 

 Liabilities (Note 13) 

39 Total liabilities 

 Net position 

42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 

43 Total net position 44 Total liabilities and net position 

STATEMENT OF NET COST – YEAR 2 

Line No. YEAR 2 LESSEE 

 Gross Program Costs (Note 21): 

1 Gross costs (633000E, 671000E, 671300E, 693000E, 721000E) 2 Less: earned revenue (531000E, 593000E, 593300E, 593900E, 711000E) 3 

Net pro

gram costs 

5 Net pro

gram costs includin

g Assumption Chan

ges: 

8 Net cost of operations 
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STATEMENT OF CHANGES IN NET POSITION – YEAR 2 

Line No. YEAR 2 LESSEE 

 Unexpended Appropriations: 

1 Be

ginnin

g Balance (310000B) 

3 Be

ginnin

g Balance, as adjuste

d 

4 Appropriations received (310100E) 7 Appropriations used (310700E, 310710E) 8 Net Chan

ge in Unexpended Appropriations (calc.) 

9 Total Unexpended Appropriations 

– Endin

g (calc.) 

Cumulative Results of Operations:

10 Be

ginnin

g Balances (331000B) 

12 Be

ginnin

g balances, as adjuste

d 

14 Appropriations used (570000E, 570010E) 21 Revenue From (Net Cost of) Operations (+/-) 22 

Net Chan

ge in Cumulative Results of Operations 

23 Cumulative Results of Operations 

– Endin

g 

24 Net Position (calc.) 

SF 133 AND SCHEDULE P – REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES AND BUD

FINANCING SCHEDULE – YEAR 2 

Line 

No. 

YEAR 2 LESSEE 

BUDGETARY RESOURCES SF 133 Schedule P 

0900 Total new obligations, unexpired accounts (420100B, 480100B, 490100B) - 1000 Unobligated balance brought forward, Oct 1 (420100B, 480100B, 490100B) - 1070 Unobli

gated balance (total) (calc.) - 

Budget authority: Appropriations: Discretionary: 
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1700 Collected (426600E) - 1750 Spendin

g authorit

y from offsettin

g collections, discretionary (total) - 

1900 Bud

get authority (total) - 

1910 Total budgetary resources (calc.) - 1930 Total budgetary resources available - 

Memorandum (non-add) entries: 

1941 Unexpired unobli

gated balance, end of 

year (445000E, 461000E) - 

STATUS OF BUDGETARY RESOURCES New obligations and upward adjustments: Direct: 

2002 Cate

gory B (b

y project) (480100E 

– 480100B, 490100E 

– 490100B, 490200E) 25,500 

2004 Direct obli

gations (total) (calc.) 25,500 

2170 

New obli

gations, unexpired accounts (480100E 

– 480100B, 490100E 

– 490100B, 490200E) 25,500 

2190 

New obli

gations and upward adjustments (total) 25,500 

 Unobli

gated balance: 

 Apportioned, unexpired accounts: 2201 Available in the current period (461000E) - 2403 Other (445000E) - 2412 Unexpired unobli

gated balance: end of 

year (calc.) - 

2490 Unobli

gated balance, end of 

year (total) - 

2500 Total budgetary resources (calc.) 25,500 

Memorandum (non-add) entries: 

2501 Subject to apportionment 

– excludin

g anticipated amounts (445000E, 461000E) - 

CHANGE IN OBLIGATED BALANCE Unpaid obligations: 

3000 Unpaid obli

gations, brou

ght forward, Oct 1 (480100B, 490100B) 6,500 6,50

3010 

New obli

gations, unexpired accounts (480100EE 

– 480100B, 490100E 

– 490100B, 490200E) - 

3020 Outla

ys (

gross) (-) (490200E) (32,000) (32,000

3050 Unpaid obli

gations, end of 

year (480100E, 490100E) - 

3100 Obli

gated balance, start of 

year (+ or -) 6,500 6,50

3200 Obli

gated balance, end of 

year (= or -) - 

BUDGET AUTHORITY AND OUTLAYS, NET Discretionary: 
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4000 Bud

get authority, gross (calc.) - 

Outlays, gross

4010 Outla

ys from new discretionary authorit

y (490200E) 32,000 32,00

4020 Outla

ys, 

gross (total) 32,000 32,00

Offsets against gross budget authority and outlays:Offsetting collections (collected) from: 

4033 

Non-Federal sources (-) (426600E) - 

4040 Offsets a

gainst 

gross bud

get authorit

y and outla

ys (-) (calc.) - 

4070 Bud

get authority, net (discretionary) (calc.) 

4080 Outla

ys, net (discretionar

y) (calc.) 32,000 32,00

4180 Bud

get authority, net (total) (calc.) - 

4190 Outla

ys, net (total) (calc.) 32,000 32,00

Unobligated balance: 

5311 Direct unobli

gated balance, start of 

year (420100B, 480100B, 490100B) - 

5313 Discretionary unobli

gated balance, start of 

years (420100B, 480100B, 490100B) - 

5321 Direct unobli

gated balance, end of 

year (445000E, 461000E) - 

5323 Discretionary unobli

gated balance, end of 

year (445000E, 461000E) - 

5331 Direct obli

gated balance, start of 

year (480100B, 490100B) 6,500 6,50

5333 Discretionary obli

gated balance, start of 

year (480100B, 490100B) 6,500 6,50

Year 2 Reclassified Financial Statements:

STANDARDIZED BALANCE SHEET – YEAR 2 

Line No. YEAR 2 LESSEE 

 Assets (Note 2)  Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 7 Total intra-governmental assets 

Other than intra-governmental 

12 General and ri

g

ht-to-use propert

y, plant, and equipment, net (Note 10) (175000E, 175900E) 

18 Total other than intra-governmental 19 Total assets 

 Liabilities (Note 13) 

39 Total liabilities 
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 Net position 

42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 

43 Total net position 44 Total liabilities and net position 

RECLASSIFIED STATEMENT OF NET COST – YEAR 2 

Line No. YEAR 2 LESSEE 

1 Gross cost 2 Non-federal gross cost (633000E, 671000E, 671300E, 693000E, 721000E) 6 Total non-federal gross cost (calc.) 9 Department total gross cost (calc.) 

10 Earned revenue 11 

Non-federal earned revenue (531000E, 593000E, 593300E, 593900E, 711000E) 

14 Department total earned revenue (calc.) 15 Net cost of operations (calc.) 

RECLASSIFIED STATEMENT OF OPERATIONS AND CHANGES IN NET POSITION – YEAR 2 

Line No. YEAR 2 LESSEE 

1 Net position, beginning of period (310000B, 331000B) 7 Financing sources: 

7.1 Appropriations received as adjusted (rescissions and other adjustments) (RC 41)/1 (310100E) 7.2 Appropriations used (RC 39) (310700E, 310710E) 7.3 Appropriations expended (RC 38)/1 (570000E, 570010E) 

7.30 Total financing sources (calc.) 

8 Revenue From (Net cost of) Operations (+/-) 9 Net position, end of period (calc.)